The March Think Tank focused on the future of public procurement
At the beginning of March, we continued the Think Tank with our procurement clients. This time, we focused on the most relevant topic: the future of public procurement in Estonia and the EU.
We took a look at the results of the simplification project led by the Ministry of Finance and discussed the pros and cons of the proposed changes that have the greatest impact. Simplification as an objective is great, but in reality, it must also be understood that the more streamlined the regulation is, the more challenging its everyday implementation becomes. The proposal with the greatest impact from the simplification project is to eliminate the national threshold and allow simplified procurements up to the international threshold, as well as raise the public procurement thresholds. The Ministry of Finance is currently working on an implementation plan to move forward with the selected proposals, and by the end of May, we should see which actual legal changes can be expected.
The new European Commission team is also working on modernizing and simplifying public procurement regulations. Ursula von der Leyen's political guidelines call for better utilization of public procurement, which accounts for 14% of the EU’s GDP. If procurement efficiency increased by just 1%, it would be possible to save €20 billion annually. The guidelines propose updating the public procurement directives to ensure the security of supply for certain essential technologies, products, and services, while simultaneously simplifying the rules and reducing administrative burdens, particularly for EU startups and innovators. This should enable the preference of European products in public procurement in certain strategic sectors and technologies. It is encouraging to note that the process of updating the directives has already begun.
Liisi Heiskonen, Head of the Rail Baltic Estonia procurement unit, who participated in the Think Tank, commented on the event as follows: “Kadri and Merily provided a summary of the most significant proposed changes to the public procurement law, followed by a lively exchange of experiences with other procurers. Regarding the proposed changes, we discussed whether the changes would simplify the daily work of procurers or instead create new challenges in procurement processes. The reassurance came from knowing that all procurers are facing similar challenges, and the knowledge that you’re not alone in your concerns 😊.”
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We thank all the clients who participated in the Think Tank for their thoughtful contributions and insights! Our meetings are always lively and educational!
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